US stock futures are rising Wednesday as better-than-expected results from Coreweave Inc., anticipation of Anthropic PBC’s initial public offering and a blockbuster quarter for OpenAI are reviving the AI trade.
The market recovery comes even after oil halted a two-day decline and despite renewed concerns about inflation. Hotter-than-anticipated consumer price data sent Treasury yields surging Tuesday, fueling bets on more interest rate hikes by the Federal Reserve. The US Treasury market is closed Wednesday in observance of Veteran’s Day.
Future contracts on the S&P 500 Index traded 1% higher as of 8:24 a.m. in New York. Contracts on the tech-heavy Nasdaq 100 futures were up 2%. Coreweave shares are rallying as much as 19% before the bell, bolstered by better than anticipated revenue and a full year outlook that came in stronger than Wall Street expected.
For investors, these results could help ease anxiety around the long-term sustainability of AI infrastructure growth.
See more: AI Worries Outweigh Strong Economic Data
“If CoreWeave can string together several quarters in a row of this type of execution, that fear would subside,” said Brian Mulberry, chief market strategist at Zacks Investment Management, in a note.
While the AI trade has experienced notable volatility, strategists do not believe the bull market is over. “The way we look at it, 95% of the correction has already happened,” Mike Wilson, chief US equity strategist and chief investment officer at Morgan Stanley, said on Bloomberg Radio. “We’re pretty confident that the AI buildout is going to continue.”
Oil rebounded following two consecutive days of losses, with Brent rising back above $93 a barrel and West Texas Intermediate trading near $87 a barrel. The bounce comes as a senior Iranian official rejected the prospect of giving up enriched uranium, a signal that Washington and Tehran peace talks remain stalled.
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